Nowadays investment banking division of an investment bank helps governments and institutions to
raise their capital and complete mergers and acquisitions.
It is a really demanding post with analysts frequently working for 100 hours per week. This position is
very intense and have a high competition among people.
The compensation for this post is very high and it is a very high profile job. Although it has kind of a
military like culture and have a lot of grunt work.
To work as a investment banker having a personality which have the following traits is very important.
The traits are as follows:–
Highly ambitious
Detail oriented
Quantitative
Polished and presentable
Competitive
Entry point
There are two main entry points . They are analyst and associate.
To be an analyst one has to be recruited from undergraduate programs such as B.Com or B.A at target
schools or other highly regarded universities. An analyst is expected to stay for two to three years in
their position. At that point they either will be promoted or will go back to business school or move on
to something else.
To be an associate one has to be recruited from MBA or other graduate student program. There are
strong analysts also who are promoted as associate but typically analyst go back to school before being
promoted. Associates have the same work as analyst but take on more responsibility quickly and are on
fast track for promotion.
Exit strategy
Going on to work in private equity, equity research ,in-house at a cooperation or do something else
entirely different is done by analysts and associates.
Graduating “PE” is often a dream for many investment bankers and the banks are natural feeder
systems for these firms.
Compensation of investment banking
it is often an question that how much can you earn in investment banking.
Below , there is a guideline of how much can you earn from IB.
Analyst: $ 100,000 to $150,000(base salary plus bonus)
Associate: $ 150,000 to $ 300,000(base salary plus bonus)
VP/Director/MD: $ 300,000 to $ 1,000,000+
Financial modeling skills
a lot of time is spent by building financial models in the excel by the analyst and associates by working
in the IBD of a bank.
Common examples of the types of financial models include three statement models, DCF models, M and
A models , and more.